Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

twitter.com

Post reply on HN
Print view View original

771–780 of 1001 posts

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#771

Post by jaywalk »

slim wrote: post #705
zarkov99 wrote: post #57

Sure. Robinhood got a call from someone very powerful in their circle, politely asking them to stop the amateur plebes from interfering with their professional market manipulation. We are taking about people commanding titanic amounts of capital and (indirect) regulatory power. Robinhood then had the choice, do we make enemies out of these people or do we just screw, er, I mean protect, our customers? Unburdened by a…

is robinhood a publicly traded company? are there any alternatives?

They're very close to doing an IPO. Or at least they were, before today. This could very well end up destroying the company.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#772

Post by whimsicalism »

thanksgiving wrote: post #767
beachwood23 wrote: post #673

Earlier quoted context omitted.

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

> This is definitely illegal. I think there must be laws that say the CEO and the board must get prison terms (preferably life, with no possibility of parole) for these crimes. No, I will not listen to hogwash like "you shouldn't be responsible for the actions of people you hire". BS. They report to you. Even if they did it on their own, why didn't you reverse it? If you are not responsible for the actions of your em…

Why are Americans so crazy for absurdly long penal punishments?

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#773

Post by esoterica »

wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

> Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene.

The entire history of the retail investing is unsophisticated investors shooting themselves in the foot and then turning around and suing everyone who allowed them to shoot themselves in the foot. It's obvious to everyone watching that for every retail investor who buys in at $10 and cashes out at the top there are going to be 20 other traders who FOMO in at $300 or $500 and then hodls all the way down to $10. People have a stated preference for Freedom to take risks but a revealed preference for paternalism (they start suing everyone around them for not "protecting" them from themselves when risks go bad). You can't blame companies for rationally responding to the legal liability they think they will incur if they let more retail traders pile onto meme stocks.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#774

Post by colinmhayes »

game_the0ry wrote: post #717
beachwood23 wrote: post #673

Earlier quoted context omitted.

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

Wow. Just wow. As RH user myself, I did not have a clue I was actually doing business (indirectly) with Citadel. I'll be closing my RH account soon. For now, I'll be holding the line on GME.

Everyone who buys options is doing business with citadel. They're the originator of most options. HFT firms are inescapable because their very reason for existing is to provide the market with the best prices.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#775

Post by wocram »

nickysielicki wrote: post #636
gmm1990 wrote: post #594

Earlier quoted context omitted.

I'm pretty happy they are doing it. This is really in the best interest of the average Robinhood user trying to buy GME right now. Maybe they shouldn't completely ban it, but there should be at least very extreme warnings about why its a terrible idea to buy.

Dude it's my fuckin' money. I don't need or want protection. Maybe I want to buy a couple hundred dollars of meme stonks solely because it's funny. Is that not allowed?

I imagine the paternalism argument would be something like "currently GME is part of a ponzi scheme, and you would be defrauded by making this purchase".

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#776

Post by cm2187 »

wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

Are they banning people from trading the stock or trading the stock on margin? On margin would be reasonable, if the volatility of the stock becomes very high, the broker is taking a credit risk on its client it may not want (plus suitability consideration). It may also make sense to restrict access to certain stocks if they are deemed too complicated/dangerous to retail investors. But I doubt the suitability would be a function of a market movement.

Or is the platform assuming that its clients are doing market manipulation by coordinating on reddit to push the price up, and wants no part to a crime being committed.

Just speculating, but can think of some reasonable reasons.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#777

Post by whimsicalism »

game_the0ry wrote: post #717
beachwood23 wrote: post #673

Earlier quoted context omitted.

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

Wow. Just wow. As RH user myself, I did not have a clue I was actually doing business (indirectly) with Citadel. I'll be closing my RH account soon. For now, I'll be holding the line on GME.

If you plan on continuing trading, it is going to be difficult to avoid doing business indirectly with Citadel, they are a major market maker.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#778

Post by mdavidn »

TheRealDunkirk wrote: post #119
wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

> Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Indeed. There's a lot of talk about Section 230 lately, and how "precious" it is to freedom of speech. That law protects them from culpability against hosting legally-dubious things like this market move -- and any malfeasant commenting about it -- but none of the big platforms are acting like it exists. They're just censoring anyway, be…

Section 230(c)(2) explicitly protects service providers who remove content that they deem to be “otherwise objectionable.”

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#779

Post by qwerty12345678 »

whimsicalism wrote: post #713
beachwood23 wrote: post #673

Earlier quoted context omitted.

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

I'm just not really sure I understand the narratives being thrown around right now, and I'd like to think I understand the economy somewhat Melvin Capital closed out their short position yesterday with a large loss - and Citadel helped cover that loss. As far as I know, Citadel and Melvin Capital no longer are holding any short positions in Gamestop. So what do they have to gain, by your narrative, from suppressing t…

BS they closed their shorts....they shifted them to shell companies or to complicit 3rd parties so they could claim they unloaded the shorts publicly.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#780

Post by kchr »

DC1350 wrote: post #292

For a lot of young people, the only paths to a regular life are either work hard for 5-10 years, live like a poor student, save the majority of their money and gamble that life will be affordable at the end, or just gamble away their money today. It’s so much harder to reach regular milestones that it’s sometimes not even worth the effort. I don’t think taking this away from a bunch of nihilistic young men is going t…

<3
Post reply on HN